Washington County Business Owner Sentenced on Sales Tax Evasion Charges

Monday, May 18, 2009 | 09:24am

JONESBOROUGH, Tenn. - The Department of Revenue’s Special Investigations Section conducted the investigation that led to the sentencing of Gonzalo Alverez Moralez, president of Ornelas, Inc., dba La Carreta Mexican Restaurant located at 5494 Bobby Hicks Highway in Gray, Tenn.

On March 31, 2009, Moralez pleaded guilty to six counts of sales tax evasion. Yesterday, he was sentenced to 90 days in the Washington County Jail and two years probation. Moralez will serve 30 days each year over the next three years. Moralez paid restitution to the state of Tennessee in the amount of $60,105.65 for unpaid sales tax. Additional penalties and interest will be due.

“Tennessee’s tax structure depends on taxpayers voluntarily complying with the laws,” said Commissioner Reagan Farr. “Taxpayers who collect but intentionally do not remit sales tax breach the public’s trust. This sentencing underscores our commitment to collecting all taxes due the state of Tennessee.”
 
This case was pursued criminally by the department in cooperation with District Attorney General Tony Clark’s Office. Citizens who suspect violations of Tennessee's revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).
 
The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.TN.gov/revenue.
 
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